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V1729-14 3 July 2014 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
ITPAJD · comunidad de bienes

Dissolution of joint ownership without excess adjudication is not subject to IRPF or IIVTNU

Five siblings consulted on the taxation of the dissolution of two joint ownership arrangements (bare ownership and usufruct) to allocate specific assets without compensation. The DGT ruled that no capital gains tax (IRPF) arises if ownership shares are respected, and no Property Transfer Tax (IIVTNU) is due if the allocation results from the partition of an inheritance.

The question raised

Taxation of the operation.

The DGT's ruling

The dissolution of a community of bare ownership shall only be taxed on documented legal acts if there are no excesses in adjudication. In the dissolution of a community of usufruct, if ownership is consolidated, the higher of the settlements between Inheritance and Gift Tax or the ITPAJD shall apply. For Personal Income Tax purposes, there is no change in assets if the adjudication corresponds to the ownership share. The IIVTNU is not accrued in the adjudication of real estate derived from a community constituted by mortis causa acts.

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